Marathon Oil Announces Budget for Investment in Oil Exploration
Marathon Oil Corporation made an announcement of its investment in oil exploration budget for the coming year, amounting to $5.2 billion. About 65 percent of the total amount is set aside for the company’s growth of its liquids-rich assets (oil).
The capital budget for the coming year underscores the continued focus of Marathon Oil on significant growth, which is expected to result to an increase of 6 to 8 percent in the company’s year-over-year output, driven by the company’s activity in liquids-rich resource plays in the United States., according to Clarence P. Cazalot Jr., President and CEO of Marathon Oil.
Around $1.9 billion, or a third, of the total budget is set aside for the South Texas’ Eagle Ford shale play, where the company showed its ability to produce great results this year, and just increased their 2013 production goal in the area to a daily oil equivalent of 85,000 net barrels, added Cazalot.
The economics and good performance that the company is attaining in the Eagle Ford, together with their ability to run efficiently, make the area a primary point of the company’s strategy for growth. North Dakota’s Bakken shale and the resource basin in Oklahoma are two other significant domestic areas of focus for Marathon Oil.
The company is planning to spend about $1.1 billion on basic assets across Africa, Europe and North America, which includes mining oil sands. These huge, stable assets are an important part of the company’s world portfolio, and will let them produce sufficient cash flow for future oil investment growth. Simultaneously, the company is constantly working on lowering costs and optimizing portfolios to maximize profits from their central assets, according to Cazalot.
Moreover, the company’s plans to perform oil drilling in the coming year of around 10 to 13 oil exploration, wells located in several of the highly prospective basins worldwide, are anticipated to give more benefits to Marathon Oil.
With the set budget, the company commits to practice discipline in its finances, to keep its balance sheet strong and to create and deliver value for its shareholders.